Biting the hand that lends

Share via

The Bank of England has warned banks to raise extra capitalAndrew Cowie/AFP/Getty Images

Last updated at 12:01AM, March 27 2013

Sir Mervyn King and the Bank of England’s Financial Policy Committee gave the
banks an unwanted present before Christmas in the form of a warning that
they needed to raise a “material” amount of additional capital.

The FPC will finally confirm the figure it has in mind today and, despite
hopes it might back down from announcing a spectacular number, the chances
are the pronouncement will ruffle feathers.

The best hope is for some kind of compromise, either with the FPC giving the
banks an extended deadline to raise new capital, or perhaps recognising that
they have gone some way